Several Amazon India executives are busy stitching content deals with various production houses and studios as the e-commerce giant readies to make a big splash in the digital video market with Amazon Prime Video. While the launch date hasn't been announced, a Diwali launch is the most likely possibility.

Highly placed sources have confirmed to ET that Amazon is in final lap of negotiations with Yash Raj Films, Mukesh Bhatt-owned Vishesh Films, and Salman Khan Films for the digital rights of their libraries, and with T Series for music rights. The company has already announced a deal with Dharma Productions.

Importantly, in the film deals it's pitching for pre-satellite rights, that is, before television premiere of the films.

Media reports suggest that the Seattle-based company is ready to spend up to $300 million, or close to Rs 2,000 crore, for content in India, a figure higher than annual programming budgets of the top three Hindi general entertainment channels put together.

When contacted, an Amazon spokesperson said, "We are very excited about our plans for India and will look to partner with among the best content partners. We have not yet announced date for India launch and do not comment on future plans."

Globally, Amazon's content strategy is based on the two pillars — originals and films, but this model will be tweaked in India to suit the local preferences. Multiple sources in the industry said that Amazon is looking at deals valued on the basis of box office performance of the films.

For example, if the entire catalogue of films collected a certain amount at the domestic box office, Amazon will pay out in low-teens of that amount to have a specific window of streaming. In India, Amazon is also keen on sports, specially the Indian Premier League (IPL) rights, for which it has bought the tender document, hinting its appetite to go after live sporting events, something arch-rival Netflix has avoided in all markets.

The third largest piece of Amazon's content strategy is the originals, for which it is busy signing content makers. ET had earlier reported Amazon has tied up with Farhan Akhtar and Ritesh Sidhwani's production house Excel Entertainment for its first original show, Power Play. Prime will have to deal with local as well international competition, including Hotstar, Voot, Eros Now, Netflix and the upcoming Alt (Balaji Telefilms).

Executives of rival companies said that while Amazon's entry will have a "significant" impact on the overall digital over-the-top (OTT) ecosystem, it will not affect their business model as Prime Video will be an add-on service for Amazon's Prime customers.

"One has to understand that content is not the core business, but an add-on service for Amazon. Yes, its business is expanding and in time that will drive content usage as well, provided the content is good. But it will not be a threat to others," a top executive of an OTT player said on condition of anonymity.

Another executive from a broadcasting company with an OTT presence added that even if Amazon goes after the rights for the popular twenty20 tournament Indian Premier League, it will be from 2018 only.